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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): July 31, 2024

Columbia Financial, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware001-3845622-3504946
(State or other jurisdiction(Commission(IRS Employer
of incorporation)File Number)Identification Number)

19-01 Route 208 North, Fair Lawn, New Jersey 07410
(Address of principal executive offices)

(800) 522-4167
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common stock, $0.01 par value per shareCLBKThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition

    On July 31, 2024, Columbia Financial, Inc. (the "Company") issued a press release announcing its financial results for the three and six months ended June 30, 2024. The Company's press release is included as Exhibit 99.1 to this report.

    The information set forth in this Item 2.02 and in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.

Item 9.01 Financial Statements and Exhibits
    
        (d) Exhibits
Exhibit NumberDescription
Press release dated July 31, 2024



104Cover Page Interactive Data File (embedded within the Inline XBRL document)


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SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunder duly authorized.
Date:July 31, 2024/s/Dennis E. Gibney
Dennis E. Gibney
Senior Executive Vice President and Chief Financial Officer


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Columbia Financial, Inc. Announces Financial Results
for the Second Quarter Ended June 30, 2024

Fair Lawn, New Jersey (July 31, 2024): Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank ("Columbia") and Freehold Bank ("Freehold"), reported net income of $4.5 million, or $0.04 per basic and diluted share, for the quarter ended June 30, 2024, as compared to $1.7 million, or $0.02 per basic and diluted share, for the quarter ended June 30, 2023. The income for the quarter ended June 30, 2024 reflected higher non-interest income, mainly due to the 2023 period including a $9.6 million loss on securities transactions, and lower non-interest expense, partially offset by lower net interest income, mainly due to an increase in interest expense, higher provision for credit losses and higher income tax expense. For the quarter ended June 30, 2024, the Company reported core net income of $5.3 million, a decrease of $6.5 million, or 54.9%, compared to core net income of $11.7 million for the quarter ended June 30, 2023.
For the six months ended June 30, 2024, the Company reported net income of $3.4 million, or $0.03 per basic and diluted share, as compared to $20.4 million, or $0.20 per basic and diluted share, for the six months ended June 30, 2023. Earnings for the six months ended June 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, a higher provision for credit losses and higher non-interest expense, partially offset by higher non-interest income and lower income tax expense. Non-interest income for the 2023 period included a $10.8 million loss on securities transactions.
Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “The second quarter results showed improvement over the first quarter despite continuing pressure on funding costs. Our net interest margin increased 6 basis points over the first quarter of 2024 and we believe net interest margin expansion and expense management will improve earnings on a go forward basis. The Company's balance sheet, asset quality and capital remain strong, and we have maintained a stable, diversified deposit base and abundant liquidity. During the quarter, the Bank also expanded its presence in southern New Jersey by opening a new branch in the city of Camden."
Results of Operations for the Three Months Ended June 30, 2024 and June 30, 2023
Net income of $4.5 million was recorded for the quarter ended June 30, 2024, an increase of $2.9 million, or 172.8%, compared to $1.7 million for the quarter ended June 30, 2023. The increase in net income was primarily attributable to a $9.7 million increase in non-interest income, mainly due to the 2023 period including a $9.6 million loss on securities transactions, and a $1.4 million decrease in non-interest expense, partially offset by a $7.1 million decrease in net interest income, and a $1.1 million increase in provision for credit losses.
Net interest income was $44.1 million for the quarter ended June 30, 2024, a decrease of $7.1 million, or 13.8%, from $51.2 million for the quarter ended June 30, 2023. The decrease in net interest income was primarily attributable to a $24.2 million increase in interest expense on deposits and borrowings, partially offset by a $17.1 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred over the previous year, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The increase in interest expense on deposits was driven by these same rate increases and an increase in the average balance of interest-bearing deposits, coupled with intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $436,000 for the quarter ended June 30, 2024, compared to $116,000 for the quarter ended June 30, 2023.
The average yield on loans for the quarter ended June 30, 2024 increased 57 basis points to 4.93%, as compared to 4.36% for the quarter ended June 30, 2023, as interest income was influenced by rising interest rates and loan growth. The average yield on securities for the quarter ended June 30, 2024 increased 56 basis points to 2.89%, as compared to 2.33% for the quarter ended June 30, 2023, as new securities purchased during the 2024 period were at higher rates. The average yield on other interest-earning assets for the quarter ended June 30, 2024 increased 22 basis points to 6.30%, as compared to 6.08% for the quarter ended June 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.


Total interest expense was $69.2 million for the quarter ended June 30, 2024, an increase of $24.2 million, or 53.8%, from $45.0 million for the quarter ended June 30, 2023. The increase in interest expense was primarily attributable to a 124 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 20 basis point increase in the average cost of borrowings, coupled with an increase in the average balance of borrowings. Interest expense on deposits increased $21.1 million, or 73.4%, and interest expense on borrowings increased $3.1 million, or 19.2%.
The Company's net interest margin for the quarter ended June 30, 2024 decreased 36 basis points to 1.81%, when compared to 2.17% for the quarter ended June 30, 2023. The weighted average yield on interest-earning assets increased 57 basis points to 4.64% for the quarter ended June 30, 2024, as compared to 4.07% for the quarter ended June 30, 2023. The average cost of interest-bearing liabilities increased 107 basis points to 3.49% for the quarter ended June 30, 2024, as compared to 2.42% for the quarter ended June 30, 2023. The increase in yields for the quarter ended June 30, 2024 was due to the impact of market interest rate increases between periods. The net interest margin decreased for the quarter ended June 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets. The Company's net interest margin for the quarter ended June 30, 2024 when compared to the quarter ended March 31, 2024 increased 6 basis points from 1.75% to 1.81%.
The provision for credit losses for the quarter ended June 30, 2024 was $2.2 million, an increase of $1.1 million, from $1.1 million for the quarter ended June 30, 2023. The increase in provision for credit losses during the quarter was primarily attributable to net charge-offs totaling $533,000 and an increase in quantitative loss rates.
Non-interest income was $9.2 million for the quarter ended June 30, 2024, an increase of $9.7 million, from $(546,000) for the quarter ended June 30, 2023. The increase was primarily attributable to a decrease in the loss on securities transactions of $9.6 million.
Non-interest expense was $46.2 million for the quarter ended June 30, 2024, a decrease of $1.4 million, from $47.6 million for the quarter ended June 30, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $4.8 million, partially offset by an increase in professional fees of $2.1 million, and an increase in merger expenses of $426,000. The decrease in compensation and employee benefits expense was the result of workforce reduction and other related employee expense cutting strategies implemented during 2023 and 2024. Professional fees included an increase in legal, regulatory and compliance-related costs.
Income tax expense was $279,000 for the quarter ended June 30, 2024, an increase of $22,000, as compared to income tax expense of $257,000 for the quarter ended June 30, 2023, mainly due to an increase in pre-tax income. The Company's effective tax rate was 5.8% and 13.4% for the quarters ended June 30, 2024 and 2023, respectively. The effective tax rate for the 2024 period was primarily impacted by permanent income tax differences, and the effective tax rate for the 2023 period was primarily impacted by the loss on the sale of securities.
Results of Operations for the Six Months Ended June 30, 2024 and June 30, 2023
Net income of $3.4 million was recorded for the six months ended June 30, 2024, a decrease of $17.0 million, or 83.4%, compared to $20.4 million for the six months ended June 30, 2023. The decrease in net income was primarily attributable to a $25.7 million decrease in net interest income, a $6.2 million increase in provision for credit losses, and a $397,000 increase in non-interest expense, partially offset by a $9.1 million increase in non-interest income and a $6.2 million decrease in income tax expense.
Net interest income was $86.3 million for the six months ended June 30, 2024, a decrease of $25.7 million, or 23.0%, from $112.0 million for the six months ended June 30, 2023. The decrease in net interest income was primarily attributable to a $58.6 million increase in interest expense on deposits and borrowings, partially offset by a $32.9 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred over the previous year and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The increase in interest expense on deposits was driven by these same rate increases coupled with intense competition for deposits in the market, an increase in average balances of deposits, and the repricing of existing deposits into higher cost products. The increase in interest expense on
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borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $703,000 for the six months ended June 30, 2024, compared to $315,000 for the six months ended June 30, 2023.
The average yield on loans for the six months ended June 30, 2024 increased 56 basis points to 4.86%, as compared to 4.30% for the six months ended June 30, 2023, as interest income was influenced by higher interest rates and loan growth. The average yield on securities for the six months ended June 30, 2024 increased 33 basis points to 2.77%, as compared to 2.44% for the six months ended June 30, 2023, as a number of adjustable rate securities tied to various indexes repriced higher during the six months, and new securities purchased during the 2024 period were at higher yields. The average yield on other interest-earning assets for the six months ended June 30, 2024 increased 93 basis points to 6.19%, as compared to 5.26% for the six months ended June 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.
Total interest expense was $135.6 million for the six months ended June 30, 2024, an increase of $58.6 million, 76.1%, from $77.0 million for the six months ended June 30, 2023. The increase in interest expense was primarily attributable to a 157 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 29 basis point increase in the average cost of borrowings, and an increase in the average balance of borrowings. Interest expense on deposits increased $52.4 million, or 114.4%, and interest expense on borrowings increased $6.2 million, or 19.9%.
The Company's net interest margin for the six months ended June 30, 2024 decreased 59 basis points to 1.78%, when compared to 2.37% for the six months ended June 30, 2023. The weighted average yield on interest-earning assets increased 57 basis points to 4.57% for the six months ended June 30, 2024, as compared to 4.00% for the six months ended June 30, 2023. The average cost of interest-bearing liabilities increased 136 basis points to 3.44% for the six months ended June 30, 2024, as compared to 2.08% for the six months ended June 30, 2023. The increase in yields for the six months ended June 30, 2024 was due to the impact of market interest rate increases between periods. The net interest margin decreased for the six months ended June 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.
The provision for credit losses for the six months ended June 30, 2024 was $7.5 million, an increase of $6.2 million, from $1.3 million for the six months ended June 30, 2023. The increase in provision for credit losses during the six months was primarily attributable to net charge-offs totaling $5.5 million and an increase in quantitative loss rates.
Non-interest income was $16.6 million for the six months ended June 30, 2024, an increase of $9.1 million, from $7.5 million for the six months ended June 30, 2023. The increase was primarily attributable to a decrease in the loss on securities transactions of $9.6 million.
Non-interest expense was $91.9 million for the six months ended June 30, 2024, an increase of $397,000, from $91.5 million for the six months ended June 30, 2023. The increase was primarily attributable to an increase in federal deposit insurance premiums of $1.8 million, due to the 2024 period including an increase in a one-time special assessment charge, an increase in professional fees of $4.9 million, and an increase in other non-interest expense of $888,000, partially offset by a decrease in compensation and employee benefits expense of $8.4 million. Professional fees included an increase in legal, regulatory and compliance-related costs. The decrease in compensation and employee benefits expense was the result of workforce reduction and other related employee expense cutting strategies implemented during 2023 and 2024.
Income tax expense was $150,000 for the six months ended June 30, 2024, a decrease of $6.2 million, as compared to income tax expense of $6.4 million for the six months ended June 30, 2023, mainly due to a decrease in pre-tax income. The Company's effective tax rate was 4.2% and 23.9% for the six months ended June 30, 2024 and 2023, respectively. The effective tax rate for the 2024 period was also impacted by permanent income tax differences.
Balance Sheet Summary
Total assets increased $118.0 million, or 1.1%, to $10.8 billion at June 30, 2024 as compared to December 31, 2023. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $169.9 million, an
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increase in debt securities held to maturity of $10.1 million, and an increase in other assets of $15.9 million, partially offset by a decrease in cash and cash equivalents of $32.1 million, and a decrease in loans receivable, net, of $57.5 million.
Cash and cash equivalents decreased $32.1 million, or 7.6%, to $391.1 million at June 30, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of debt securities available for sale of $246.2 million, repurchases of common stock under our stock repurchase program of $5.9 million and a decrease in total deposits of $65.0 million, partially offset by proceeds from principal repayments on securities of $59.5 million, and repayments on loans receivable.
Debt securities available for sale increased $169.9 million, or 15.5%, to $1.3 billion at June 30, 2024 from $1.1 billion at December 31, 2023. The increase was attributable to the purchases of debt securities available for sale of $246.2 million, consisting primarily of U.S. government obligations and mortgage-backed securities, partially offset by repayments on securities of $53.0 million, maturities of securities of $10.0 million, an increase in the gross unrealized loss on securities of $8.8 million, and the sale of one corporate debt security with a carrying value of $4.8 million, resulting in a loss of $1.3 million.
Loans receivable, net, decreased $57.5 million, or 0.7%, with a balance of $7.8 billion at both June 30, 2024 and December 31, 2023. One-to-four family real estate loans, commercial real estate loans, and home equity loans and advances decreased $28.7 million, $60.8 million, and $6.2 million, respectively, partially offset by increases in construction loans of $19.8 million and commercial business loans of $21.7 million. The allowance for credit losses for loans increased $2.0 million to $57.1 million at June 30, 2024 from $55.1 million at December 31, 2023.
Total liabilities increased $111.6 million, or 1.2%, to $9.7 billion at June 30, 2024 as compared to $9.6 billion at December 31, 2023. The increase was primarily attributable to an increase in borrowings of $155.2 million, or 10.2%, and an increase in accrued expenses and other liabilities of $17.1 million, or 9.2%, partially offset by a decrease in total deposits of $65.0 million, or 0.8%. The $155.2 million increase in borrowings was primarily driven by a net increase in short-term borrowings of $15.2 million and an increase in long-term borrowings of $210.0 million, partially offset by repayments of $70.0 million in maturing long-term borrowings. The $17.1 million increase in accrued expenses and other liabilities was primarily attributable to an $18.3 million net increase in balances related to our interest rate swap program. The decrease in total deposits primarily consisted of decreases in non-interest-bearing demand deposits, interest-bearing demand deposits, money market accounts, and savings and club accounts of $31.9 million, $62.0 million, $8.9 million, and $27.3 million, respectively, partially offset by an increase in certificates of deposit of $65.1 million.
Total stockholders’ equity increased $6.4 million, or 0.6%, with a balance of $1.0 billion at both June 30, 2024 and December 31, 2023. The increase in total stockholders' equity was primarily attributable to net income of $3.4 million, a $4.3 million increase in stock based compensation and an increase of $3.3 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income. These increases were partially offset by the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital.
Asset Quality
The Company's non-performing loans at June 30, 2024 totaled $25.3 million, or 0.33% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $12.7 million increase in non-performing loans was primarily attributable to an increase in non-performing one-to-four family real estate loans of $2.6 million, an increase in non-performing commercial real estate loans of $5.3 million, and an increase in non-performing commercial business loans of $4.8 million. One borrower with an outstanding $5.7 million commercial real estate loan and a related $2.6 million commercial business loan was placed on non-accrual status, representing approximately 66% of the increase in non-performing loans, during the 2024 period. The borrower is a healthcare facility that is in the process of being acquired. The Company has the first lien on the healthcare facility which has a 2024 appraised value of approximately $18.5 million along with additional collateral. The acquiring entity, which has strong cash flow, has partially guaranteed the commercial business loan and has provided cash collateral. One commercial real estate loan for $2.0 million secured by a medical condominium was transferred to other real estate owned in May 2024, and a related commercial business loan to the same borrower for $54,000 was charged-off during the quarter ended June 30, 2024.
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The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 21 loans at June 30, 2024. Non-performing assets as a percentage of total assets totaled 0.25% and 0.12% at June 30, 2024 and December 31, 2023, respectively.
For the quarter ended June 30, 2024, net charge-offs totaled $533,000, as compared to $495,000 in net charge-offs recorded for the quarter ended June 30, 2023. For the six months ended June 30, 2024, net charge-offs totaled $5.5 million, as compared to $600,000 in net charge-offs recorded for the six months ended June 30, 2023. Net charge-offs recorded for the six months ended June 30, 2024 included charge-offs related to seven commercial business loans totaling $5.6 million. Three of the seven loans represented $4.9 million of charge-offs and two of these borrowers continue making monthly payments. Management expects some additional recoveries from these borrowers on a go forward basis.

The Company's allowance for credit losses on loans was $57.1 million, or 0.73% of total gross loans, at June 30, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023.
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Additional Liquidity, Loan, and Deposit Information

The Company services a diverse retail and commercial deposit base through its 68 branches. With over 216,000 accounts, the average deposit account balance was approximately $36,000 at June 30, 2024.

The Company had uninsured deposits totaling $2.1 billion at June 30, 2024 and $1.9 billion at March 31, 2024, excluding municipal deposits of $831.2 million and $826.5 million, respectively, which are collateralized, and intercompany deposits of $13.8 million at June 30, 2024 compared to $3.5 billion at March 31, 2024, a decrease of 99.6%. Intercompany deposits significantly decreased as the Company dissolved subsidiaries during the quarter ended June 30, 2024.

The Company had uninsured deposits as summarized below:
At June 30, 2024At March 31, 2024
(Dollars in thousands)
Uninsured deposits$2,070,601 $1,888,443 
Uninsured deposits to total deposits26.6 %24.1 %

Deposit balances are summarized as follows:
At June 30, 2024 At March 31, 2024
BalanceWeighted Average RateBalanceWeighted Average Rate
(Dollars in thousands)
Non-interest-bearing demand$1,405,441 — %$1,415,909 — %
Interest-bearing demand1,904,483 2.37 1,929,490 2.23 
Money market accounts1,246,663 3.17 1,228,098 3.26 
Savings and club deposits673,031 0.83 687,303 0.73 
Certificates of deposit2,551,929 4.34 2,568,603 4.20 
Total deposits$7,781,547 2.56 %$7,829,403 2.50 %

The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at June 30, 2024. As of June 30, 2024, the Company had immediate access to approximately $2.3 billion of funding, with additional unpledged loan collateral in excess of $1.6 billion.

At June 30, 2024, the Company's non-performing commercial real estate loans totaled $8.1 million, or 0.10%, of the total loans receivable loan portfolio balance.
















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The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.
At June 30, 2024
(Dollars in thousands)
Balance% of Gross LoansWeighted Average Loan to Value RatioWeighted Average Debt Service Coverage
Multifamily Real Estate$1,409,316 18.1 %62.0 %1.61x
Owner Occupied Commercial Real Estate$699,807 9.0 %55.0 %2.10x
Investor Owned Commercial Real Estate:
Retail / Shopping centers$498,623 6.4 %52.3 %1.59x
Mixed Use211,550 2.7 58.6 1.61 
Industrial / Warehouse381,154 4.9 55.9 1.70 
Non-Medical Office197,009 2.5 54.8 1.47 
Medical Office126,566 1.6 57.9 1.50 
Single Purpose70,315 0.9 53.1 3.69 
Other131,228 1.7 51.9 1.68 
Total$1,616,445 20.8 %54.7 %1.69x
Total Multifamily and Commercial Real Estate Loans$3,725,568 48.0 %57.5 %1.74x

As of June 30, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.





























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About Columbia Financial, Inc.
The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiaries Columbia Bank and Freehold Bank, and their wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank's mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 66 full-service banking offices. Freehold Bank is a federally chartered savings bank headquartered in Freehold, New Jersey that operates 2 full-service banking offices. Both banks offer traditional financial services to consumers and businesses in their market areas.
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Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics,, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K and those set forth in the Company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company's actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.
Non-GAAP Financial Measures
Reported amounts are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

The Company also provides measurements and ratios based on tangible stockholders' equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See "Reconciliation of GAAP to Non-GAAP Financial Measures".
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COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(In thousands)
June 30,December 31,
20242023
Assets(Unaudited)
Cash and due from banks$391,004 $423,140 
Short-term investments110 109 
Total cash and cash equivalents391,114 423,249 
Debt securities available for sale, at fair value 1,263,459 1,093,557 
Debt securities held to maturity, at amortized cost (fair value of $365,344, and $357,177 at June 30, 2024 and December 31, 2023, respectively)
411,300 401,154 
Equity securities, at fair value4,531 4,079 
Federal Home Loan Bank stock87,618 81,022 
Loans receivable7,819,011 7,874,537 
Less: allowance for credit losses 57,062 55,096 
Loans receivable, net7,761,949 7,819,441 
Accrued interest receivable41,338 39,345 
Office properties and equipment, net82,547 83,577 
Bank-owned life insurance271,300 268,362 
Goodwill and intangible assets122,102 123,350 
Other real estate owned1,974 — 
Other assets324,358 308,432 
Total assets$10,763,590 $10,645,568 
Liabilities and Stockholders' Equity
Liabilities:
Deposits$7,781,547 $7,846,556 
Borrowings1,683,899 1,528,695 
Advance payments by borrowers for taxes and insurance47,842 43,509 
Accrued expenses and other liabilities203,568 186,473 
Total liabilities9,716,856 9,605,233 
Stockholders' equity:
Total stockholders' equity1,046,734 1,040,335 
Total liabilities and stockholders' equity$10,763,590 $10,645,568 


10


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended
June 30,		Six Months Ended June 30,
2024202320242023
Interest income:
(Unaudited)
(Unaudited)
Loans receivable
$95,252 $84,188 $188,201 $164,478 
Debt securities available for sale and equity securities
9,241 6,445 17,026 14,896 
Debt securities held to maturity
2,502 2,447 4,871 4,904 
Federal funds and interest-earning deposits
4,459 1,801 8,022 2,613 
Federal Home Loan Bank stock dividends
1,832 1,262 3,793 2,132 
Total interest income
113,286 96,143 221,913 189,023 
Interest expense:
Deposits
49,826 28,727 98,244 45,815 
Borrowings
19,380 16,265 37,389 31,193 
Total interest expense
69,206 44,992 135,633 77,008 
Net interest income
44,080 51,151 86,280 112,015 
Provision for credit losses
2,194 1,078 7,472 1,253 
Net interest income after provision for credit losses
41,886 50,073 78,808 110,762 
Non-interest income:
Demand deposit account fees
1,590 1,291 3,003 2,467 
Bank-owned life insurance
1,804 1,675 3,584 3,656 
Title insurance fees
744 624 1,247 1,211 
Loan fees and service charges
1,378 1,325 2,339 2,397 
Loss on securities transactions
— (9,552)(1,256)(10,847)
Change in fair value of equity securities
101 162 452 330 
Gain on sale of loans
181 (128)366 663 
Other non-interest income
3,382 4,057 6,897 7,651 
Total non-interest income
9,180 (546)16,632 7,528 
Non-interest expense:
Compensation and employee benefits
27,659 32,460 55,172 63,618 
Occupancy
6,054 5,738 12,027 11,492 
Federal deposit insurance premiums
1,879 1,734 4,234 2,423 
Advertising
661 786 1,287 1,473 
Professional fees
4,509 2,376 9,143 4,251 
Data processing and software expenses
3,914 3,601 7,881 7,426 
Merger-related expenses
692 266 714 266 
Other non-interest expense, net
879 645 1,447 559 
Total non-interest expense
46,247 47,606 91,905 91,508 
Income before income tax expense4,819 1,921 3,535 26,782 
Income tax expense279 257 150 6,395 
Net income
$4,540 $1,664 $3,385 $20,387 
Earnings per share-basic $0.04 $0.02 $0.03 $0.20 
Earnings per share-diluted$0.04 $0.02 $0.03 $0.20 
Weighted average shares outstanding-basic101,651,511 102,409,035 101,699,126 103,514,169 
Weighted average shares outstanding-diluted101,651,511 102,517,584 101,804,386 103,835,235 
11

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields
 For the Three Months Ended June 30,
20242023
Average Balance
Interest and Dividends
Yield / Cost
Average Balance
Interest and Dividends
Yield / Cost
(Dollars in thousands)
Interest-earnings assets:
Loans
$7,774,052 $95,252 4.93 %$7,736,029 $84,188 4.36 %
Securities
1,633,801 11,743 2.89 %1,527,722 8,892 2.33 %
Other interest-earning assets
401,633 6,291 6.30 %202,076 3,063 6.08 %
Total interest-earning assets
9,809,486 113,286 4.64 %9,465,827 96,143 4.07 %
Non-interest-earning assets
871,525 835,995 
Total assets
$10,681,011 $10,301,822 
Interest-bearing liabilities:
Interest-bearing demand
$1,948,389 $13,708 2.83 %$2,190,005 $8,486 1.55 %
Money market accounts
1,220,774 8,323 2.74 %890,556 5,313 2.39 %
Savings and club deposits
674,793 1,370 0.82 %813,904 479 0.24 %
Certificates of deposit
2,545,967 26,425 4.17 %2,184,915 14,449 2.65 %
Total interest-bearing deposits
6,389,923 49,826 3.14 %6,079,380 28,727 1.90 %
FHLB advances
1,576,514 19,219 4.90 %1,344,006 15,808 4.72 %
Notes payable
— — — %30,621 307 4.02 %
Junior subordinated debentures
7,023 161 9.22 %7,377 150 8.16 %
Total borrowings
1,583,537 19,380 4.92 %1,382,004 16,265 4.72 %
Total interest-bearing liabilities
7,973,460 $69,206 3.49 %7,461,384 $44,992 2.42 %
Non-interest-bearing liabilities:
Non-interest-bearing deposits
1,416,047 1,539,808 
Other non-interest-bearing liabilities
260,107 214,300 
Total liabilities
9,649,614 9,215,492 
Total stockholders' equity
1,031,397 1,086,330 
Total liabilities and stockholders' equity
$10,681,011 $10,301,822 
Net interest income
$44,080 $51,151 
Interest rate spread
1.15 %1.65 %
Net interest-earning assets
$1,836,026 $2,004,443 
Net interest margin
1.81 %2.17 %
Ratio of interest-earning assets to interest-bearing liabilities
123.03 %126.86 %

12

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields
For the Six Months Ended June 30,
20242023
Average Balance
Interest and Dividends
Yield / Cost
Average Balance
Interest and Dividends
Yield / Cost
(Dollars in thousands)
Interest-earnings assets:
Loans
$7,788,459 $188,201 4.86 %$7,705,680 $164,478 4.30 %
Securities
1,588,767 21,897 2.77 %1,637,121 19,800 2.44 %
Other interest-earning assets
383,989 11,815 6.19 %181,934 4,745 5.26 %
Total interest-earning assets
9,761,215 221,913 4.57 %9,524,735 189,023 4.00 %
Non-interest-earning assets
861,632 831,020 
Total assets
$10,622,847 $10,355,755 
Interest-bearing liabilities:
Interest-bearing demand
$1,973,569 $27,092 2.76 %$2,341,814 $14,503 1.25 %
Money market accounts
1,227,857 17,093 2.80 %815,859 7,570 1.87 %
Savings and club deposits
681,664 2,607 0.77 %850,711 693 0.16 %
Certificates of deposit
2,531,145 51,452 4.09 %2,099,296 23,049 2.21 %
Total interest-bearing deposits
6,414,235 98,244 3.08 %6,107,680 45,815 1.51 %
FHLB advances
1,511,830 37,067 4.93 %1,311,640 30,298 4.66 %
Notes payable
— — — %30,261 599 3.99 %
Junior subordinated debentures
7,020 322 9.22 %7,408 296 8.06 %
Total borrowings
1,518,850 37,389 4.95 %1,349,309 31,193 4.66 %
Total interest-bearing liabilities
7,933,085 $135,633 3.44 %7,456,989 $77,008 2.08 %
Non-interest-bearing liabilities:
Non-interest-bearing deposits
1,404,161 1,609,994 
Other non-interest-bearing liabilities
248,514 217,933 
Total liabilities
9,585,760 9,284,916 
Total stockholders' equity
1,037,087 1,070,839 
Total liabilities and stockholders' equity
$10,622,847 $10,355,755 
Net interest income
$86,280 $112,015 
Interest rate spread
1.13 %1.92 %
Net interest-earning assets
$1,828,130 $2,067,746 
Net interest margin
1.78 %2.37 %
Ratio of interest-earning assets to interest-bearing liabilities
123.04 %127.73 %

13

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Components of Net Interest Rate Spread and Margin
Average Yields/Costs by Quarter
June 30, 2024March 31, 2024December 31, 2024September 30, 2023June 30, 2023
Yield on interest-earning assets:
Loans
4.93 %4.79 %4.66 %4.47 %4.36 %
Securities
2.89 2.65 2.58 2.37 2.33 
Other interest-earning assets
6.30 6.06 5.64 5.91 6.08 
Total interest-earning assets
4.64 %4.50 %4.39 %4.17 %4.07 %
Cost of interest-bearing liabilities:
Total interest-bearing deposits
3.14 %3.02 %2.76 %2.31 %1.90 %
Total borrowings
4.92 4.98 4.96 4.70 4.72 
Total interest-bearing liabilities
3.49 %3.38 %3.18 %2.70 %2.42 %
Interest rate spread
1.15 %1.12 %1.21 %1.47 %1.65 %
Net interest margin
1.81 %1.75 %1.85 %2.06 %2.17 %
Ratio of interest-earning assets to interest-bearing liabilities
123.03 %123.06 %125.32 %127.46 %126.86 %


14

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Selected Financial Highlights
June 30, 2024March 31, 2024December 31, 2024September 30, 2023June 30, 2023
SELECTED FINANCIAL RATIOS (1):
Return on average assets0.17 %(0.04)%0.25 %0.36 %0.06 %
Core return on average assets0.20 %0.02 %0.38 %0.36 %0.46 %
Return on average equity1.77 %(0.45)%2.31 %3.23 %0.61 %
Core return on average equity2.06 %0.18 %3.55 %3.24 %4.29 %
Core return on average tangible equity2.34 %0.20 %3.99 %3.64 %4.89 %
Interest rate spread1.15 %1.12 %1.21 %1.47 %1.65 %
Net interest margin1.81 %1.75 %1.85 %2.06 %2.17 %
Non-interest income to average assets0.35 %0.28 %0.42 %0.33 %(0.02)%
Non-interest expense to average assets1.74 %1.74 %1.80 %1.67 %1.85 %
Efficiency ratio86.83 %91.96 %84.82 %75.12 %94.07 %
Core efficiency ratio85.34 %88.39 %76.93 %75.09 %81.01 %
Average interest-earning assets to average interest-bearing liabilities123.03 %123.06 %125.32 %127.46 %126.86 %
Net charge-offs to average outstanding loans0.03 %0.26 %0.01 %0.09 %0.03 %
(1) Ratios are annualized when appropriate.


ASSET QUALITY DATA:
June 30, 2024March 31, 2024December 31, 2024September 30, 2023June 30, 2023
(Dollars in thousands)
Non-accrual loans
$25,281 $22,935 $12,618 $15,150 $11,091 
90+ and still accruing
— — — — — 
Non-performing loans
25,281 22,935 12,618 15,150 11,091 
Real estate owned
1,974 — — — — 
Total non-performing assets
$27,255 $22,935 $12,618 $15,150 $11,091 
Non-performing loans to total gross loans
0.33 %0.30 %0.16 %0.19 %0.14 %
Non-performing assets to total assets
0.25 %0.22 %0.12 %0.15 %0.11 %
Allowance for credit losses on loans ("ACL")
$57,062 $55,401 $55,096 $54,113 $53,456 
ACL to total non-performing loans
225.71 %241.56 %436.65 %357.18 %481.98 %
ACL to gross loans
0.73 %0.71 %0.70 %0.69 %0.69 %

15

LOAN DATA:
June 30, 2024March 31, 2024December 31, 2024September 30, 2023June 30, 2023
(In thousands)
Real estate loans:
One-to-four family
$2,764,177 $2,778,932 $2,792,833 $2,791,939 $2,789,269 
Multifamily 1,409,316 1,429,369 1,409,187 1,417,233 1,376,999 
Commercial real estate
2,316,252 2,318,178 2,377,077 2,374,488 2,386,896 
Construction
462,880 437,566 443,094 390,940 378,988 
Commercial business loans
554,768 538,260 533,041 546,750 505,524 
Consumer loans:
Home equity loans and advances
260,427 260,786 266,632 267,016 269,310 
Other consumer loans
2,689 2,601 2,801 2,586 2,552 
Total gross loans
7,770,509 7,765,692 7,824,665 7,790,952 7,709,538 
Purchased credit deteriorated loans
12,150 14,945 15,089 15,228 16,107 
Net deferred loan costs, fees and purchased premiums and discounts
36,352 34,992 34,783 34,360 34,791 
Allowance for credit losses
(57,062)(55,401)(55,096)(54,113)(53,456)
Loans receivable, net
$7,761,949 $7,760,228 $7,819,441 $7,786,427 $7,706,980 


CAPITAL RATIOS:
June 30,
December 31,
2024 (1)
2023
Company:
Total capital (to risk-weighted assets)
14.22 %14.08 %
Tier 1 capital (to risk-weighted assets)
13.45 %13.32 %
Common equity tier 1 capital (to risk-weighted assets)
13.36 %13.23 %
Tier 1 capital (to adjusted total assets)
9.94 %10.04 %
Columbia Bank:
Total capital (to risk-weighted assets)
14.32 %14.02 %
Tier 1 capital (to risk-weighted assets)
13.50 %13.22 %
Common equity tier 1 capital (to risk-weighted assets)
13.50 %13.22 %
Tier 1 capital (to adjusted total assets)
9.42 %9.48 %
Freehold Bank:
Total capital (to risk-weighted assets)
23.84 %22.49 %
Tier 1 capital (to risk-weighted assets)
23.14 %21.81 %
Common equity tier 1 capital (to risk-weighted assets)
23.14 %21.81 %
Tier 1 capital (to adjusted total assets)
16.02 %15.27 %
(1) Estimated ratios at June 30, 2024
16

Reconciliation of GAAP to Non-GAAP Financial Measures
Book and Tangible Book Value per Share
June 30,December 31,
20242023
(Dollars in thousands)
Total stockholders' equity$1,046,734 $1,040,335 
Less: goodwill(110,715)(110,715)
Less: core deposit intangible(10,039)(11,155)
Total tangible stockholders' equity$925,980 $918,465 
Shares outstanding104,755,270 104,918,905 
Book value per share$9.99 $9.92 
Tangible book value per share$8.84 $8.75 

Reconciliation of Core Net Income
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)
Net income$4,540 $1,664 $3,385 $20,387 
Add: loss on securities transactions, net of tax— 8,274 1,130 9,249 
Add: FDIC special assessment, net of tax97 — 490 — 
Add: severance expense from reduction in workforce, net of tax— 1,390 67 1,390 
Add: merger-related expenses, net of tax652 230 672 230 
Add: litigation expenses, net of tax— 181 — 262 
Core net income$5,289 $11,739 $5,744 $31,518 

Return on Average Assets
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Dollars in thousands)
Net income$4,540 $1,664 $3,385 $20,387 
Average assets$10,681,011 $10,301,822 $10,622,847 $10,355,755 
Return on average assets0.17 %0.06 %0.06 %0.40 %
Core net income$5,289 $11,739 $5,744 $31,518 
Core return on average assets0.20 %0.46 %0.11 %0.61 %
17

Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Return on Average Equity
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Dollars in thousands)
Total average stockholders' equity$1,031,397 $1,086,330 $1,037,087 $1,070,839 
Add: loss on securities transactions, net of tax— 8,274 1,130 9,249 
Add: FDIC special assessment, net of tax97 — 490 — 
Add: severance expense from reduction in workforce, net of tax— 1,390 67 1,390 
Add: merger-related expenses, net of tax652 230 672 230 
Add: litigation expenses, net of tax— 181 — 262 
Core average stockholders' equity$1,032,146 $1,096,405 $1,039,446 $1,081,970 
Return on average equity1.77 %0.61 %0.66 %3.84 %
Core return on core average equity2.06 %4.29 %1.11 %5.87 %

Return on Average Tangible Equity
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Dollars in thousands)
Total average stockholders' equity$1,031,397 $1,086,330 $1,037,087 $1,070,839 
Less: average goodwill(110,715)(110,715)(110,715)(110,715)
Less: average core deposit intangible(10,381)(12,694)(10,668)(12,989)
Total average tangible stockholders' equity$910,301 $962,921 $915,704 $947,135 
Core return on average tangible equity2.34 %4.89 %1.26 %6.71 %

18

Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
Efficiency Ratios
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(Dollars in thousands)
Net interest income$44,080 $51,151 $86,280 $112,015 
Non-interest income9,180 (546)16,632 7,528 
Total income$53,260 $50,605 $102,912 $119,543 
Non-interest expense$46,247 $47,606 $91,905 $91,508 
Efficiency ratio86.83 %94.07 %89.30 %76.55 %
Non-interest income$9,180 $(546)$16,632 $7,528 
Add: loss on securities transactions— 9,552 1,256 10,847 
Core non-interest income$9,180 $9,006 $17,888 $18,375 
Non-interest expense$46,247 $47,606 $91,905 $91,508 
Less: FDIC special assessment(103)— (565)— 
Less: severance expense from reduction in workforce — 1,605 (74)1,605 
Less: merger-related expenses(692)(266)(714)(266)
Less: litigation expenses— (209)— (317)
Core non-interest expense$45,452 $48,736 $90,552 $92,530 
Core efficiency ratio85.34 %81.01 %86.93 %70.96 %


19
v3.24.2
Cover Page Cover Page
Jul. 29, 2020
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 31, 2024
Entity Registrant Name Columbia Financial, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-38456
Entity Tax Identification Number 22-3504946
Entity Address, Address Line One 19-01 Route 208 North
Entity Address, City or Town Fair Lawn
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 07410
City Area Code 800
Local Phone Number 522-4167
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, $0.01 par value per share
Trading Symbol CLBK
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001723596
Columbia Financial (NASDAQ:CLBK)
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